Cash Advance – Comparing Online Lenders

When you’re searching for a cash advance, comparing online lenders is important. It’s not difficult if you know what qualities are most desirable. Remember that applying online for your cash advance is only part of the process. You must also be approved and, in order to be approved, you’ve got to make sure there is in place a clearly defined repayment procedure. Here are some helpful when comparing online cash advance lenders.


Spend some time on each online lender’s website. This is the most efficient way of comparing online cash advance lenders. The first thing to look for is membership in the CFSA. The Community Financial Services Association is a membership organization that realized a need to establish a set of standards for the cash advance industry. Along with paying dues, members agree to abide by the organization’s Best Practices Guidelines with responsibilities that include truthful advertising and a willingness to encourage customers to act responsibly. Knowing that a cash advance company believes it’s important to conduct business professionally and fairly means you’re dealing with a company that cares about its customers.


This online organization maintains useful information on its website for cash advance lenders as well as the general public. You can learn more about the industry itself and view the complete listing of Best Practices. The site even has its own list of frequently asked questions.


Another membership that reflects favorably with online business owners is the Better Business Bureau’s Online Reliability Program. Similar in function to the BBB that has been in existence for decades, before becoming a member an online business also must agree to adhere to a strict policy governing customer interaction and satisfaction.


When comparing cash advance online lenders, you will know immediately which ones belong to either of these programs. Online business members in good standing will proudly display each respective organization’s icon where it’ll be clearly visible to all new visitors.


Compare access to customer service. When comparing online cash advance lenders, it’s also a good idea to check out each company’s accessibility to customer service. Sometimes when doing business on the Internet it can seem like you’re all alone. You type information about the product or service for which you’re inquiring and hope that somewhere along the line a real human being is waiting to help. There should be a toll-free customer service telephone number that’s staffed during normal business hours. Or better yet, look for sites offering “live chat” accessibility to a qualified customer service agent and get your questions answered instantaneously.


While you’re comparing the content of the various online cash advance lenders, check to see which ones offer Customer Rewards programs. On some sites you can earn money every time you refer a friend. Some will offer discounts for first-time customers. These types of incentives can leave you with even more money in your pocket.


The online cash advance industry is among the fastest-growing in the financial services industry and comparing lenders might just save you time and money!

Cash-out refinance: Turning lemons into lemonade

The oft given, rarely followed adage, "Turn Lemons into Lemonade" seems out of place in the world of refinance.  But in fact, it is quite appropriate when considering entering into a Cash Out refinance loan.  A Cash Out Refinance loan is simply a loan typically on the equity in a home, which is for greater than the amount actually owed on the home.  The difference between the actual amount owed and the amount of the new loan, is returned to the buyer in the form of a "cash out".  For example, lets imagine a couple has spent the last 10 years making monthly payments on their $100,000 home loan.  By now they have paid $50,000 on their mortgage and owe another $50,000 when the house's title shifts to them and the house officially becomes theirs.  At that 10 year mark, however, something happens.  Someone gets sick and suddenly the couple needs to come up with $20,000 to pay the medical bills.  So, they look to Cash Out Refinancing.  


Cash Out Refinace: The Negatives
As you can likely imagine, those who avail themselves of cash-out refinancing are usually financial trouble.  Because this trait is pretty common among individuals who seek out a Cash Out Refinance, there are higher default rates associated with those that take out the loans.  This higher default rate allows banks to charge higher finance and interest rates on these loans.  So, under the above example, what would typically happen, is that the Cash Out Refinance Lender would pay off the old loan of $50,000 and write up a new loan for somewhere in the vicinity of $80,000.  They would then write a check to the couple for $20,000, allowing them to pay off the medical bills.  Meanwhile, they would pocket $10,000 for conducting the transaction.  The lending agency will then set the couple up with a variable interest rate which on average is significantly higher than the rate they had under their original mortgage.  Ultimately, the couple will end up paying an extra $35,000 to $45,000 over the life of the loan for the opportunity to cash out $20,000 of their own money.  As should be clear by now, this is not usually a good deal for the borrower.


Cash Out Refinance: The Positives
But the reality is, incidents occur in which families need a lot of money in a very short period of time.  Cash Out Refinancing is one way to get that money.  If you find yourself in such a situation, you should know that there are a few steps you can take to minimize the damage.  The first is that you must look at the total amount being refinanced.  If, like the couple above, you owe $50,000, and you are getting $20,000 in cash out, any refinancing above $70,000 (50,000 + 20,000) is money that the lender is sticking in his pocket.  Seek out multiple bids to find the lowest number.  But keep in mind that you will have to go over the contract with a fine toothed comb to find this number as lenders typically try to hide and/or muddle it inside the contract.  The next, and potentially most important step, is to seek out a similarly formatted interest rate.


The Refinancers Pitch
What refinancing companies often try to do is entice you by telling you that your monthly payment will actually go down after the Cash Out Refinancing.  This is always too good to be true.  What lenders do, is backload your payments, so that for the first year or so your payments may actually be lower.  But look at years 5 - 10 of your loan and you will find that you are paying much more than you anticipated.  They do this knowing full well that you will not be able to make the big payments later on down the mortgage, and that you will be left with just one option, return to them and refinance again.  Instead what you want is to opt for a flat fixed rate mortgage.  If you owed another 15 years at 8% fixed flat interest before the Cash Out, leaving with 20 years with 8% fixed flat isn't bad.  The key to remember is that in Cash Out Refinancing, you are not getting the Cash Out for nothing.  You are losing equity in your home, and you will have to pay for that.  The key to making Lemonade is being aware of how you are paying for it, and making the repayment accountable and sustainable.

Car Financing: Which is Better: Buying or Leasing?

Purchasing a new car is always an exciting time in life; however, it can also be confusing and time confusing, especially with so many different types of financing options available. Should you purchase your next vehicle outright or would it be better to lease it? Which option will be better financially for you? Read on for more tips to help you make the right decision for you and your finances the next time you’re in the market for a new car. 


It’s important to understand that there is not a clear cut answer to this question. It really depends on your needs and situation. When considering whether it would be better to buy or lease, it is important to understand all of the terms regarding the lease. Generally, the lease will be for a specified period of time and you will probably be limited to the amount of mileage that can be placed on the vehicle. In the event that you go over that specified mileage at the end of your lease period, you will be liable for paying the overage. Lease agreements also pay what is known as a finance charge at the end of the lease agreement. So, it is important to understand that while your lease payments may be less than payments would be if you bought the vehicle outright, you will still be responsible for a sum of money at the end. 


In addition, it should be pointed out that you do not build up any equity in a vehicle when you lease it, only when your purchase it. On the other hand, when you purchase a vehicle and drive it for a long period of time, while you do build up equity, that amount declines the longer you own the vehicle. With leasing, you have the advantage of only having to pay for what you use while with the buying option you must pay for everything, regardless of whether you use it or not. 


Leasing gives you the advantage of obtaining lower payments and the option of having a new vehicle every two or three years. This can be important to many people because it provides you with the benefit of having the latest safety features on your vehicle and the comfort of knowing you won’t have any warranty problems. If you don’t care about whether you build-up equity in the vehicle and feel you won’t go over the mileage limits then leasing may be the right option for you. 


On the other hand, buying the vehicle outright; will mean higher monthly payments but the overall cost is about the same as leasing a vehicle, especially when all factors are taken into consideration, such as mileage overage payments and finance charges. Purchasing also gives you the benefit of actually owning the vehicle and if you opt to pay off the loan and keep the car, it can mean you won’t have a vehicle payment. You must also take into consideration; however, that when the warranty expires you will be responsible for the cost of repairs. This can be offset when you take into consideration that you don’t have to worry about going over mileage limits as with leasing. Additionally, there are no surprise costs at the end as there are with lease options. In the end you really need to give thought to your own situation, needs and desires.

Can your Mortgage be your Savings Account?

It is becoming increasingly popular to use a mortgage in lieu of a low-interest savings account. Is this a good idea?


The latest version is a home-equity line of credit that is used to buy a home. It is marketed as a way to pay down your mortgage faster than the traditional mortgage. But it only works at this if you use it correctly. It could be both good and bad that you can use the funds from the account whenever you want to. All you have to do is write a check.


It is basically an adjustable-rate home-equity credit line that is based on the value of the property. You make interest-only payments for the first 10 years. The balance is then fully amortized over the next 20 years. You will pay both the interest and the principal at this time.


If you go ahead and own the home for ten years, you could be facing amazing monthly payments. Your monthly payment could more than double on you. Yet, there is no negative amortization on this loan program. The interest is capped for five years and high-credit score borrowers are currently looking at a cap of 8% over the starting rate. In today's world, the maximum the interest rate could hit is in the 14% range. Yet, after five years, the cap could revert to either 21% of the state's usury.


This plan could work well for the dedicated purchaser who puts all extra money and bonuses into the mortgage account as payment on the balance. The interest is then lowered and the loan is paid off much faster. Most borrowers must have a score of over 660 to be approved.


Many advisors suggest the use of a 30-year fixed-rate mortgage with interest-only payments for the first ten years instead. Yes, the payment will go up after the inital ten years, but the interest rate won't. The concern against the equity-line to purchase is that borrowers would simply write checks without thinking about the addition to their mortgage balance. Plus, the interest rate is adjustable -- always a risk.


If you are considering an alternative loan program for the purchase of your home it is important that you sit down and do all of the necessary math. For example, you should calculate how high the payment could go due to rising interest rates on an adjustable rate mortgage. You should be able to afford the worst. If you can't, you probably should look to a less expensive home.


If you only plan on living in a home for three to five years, a loan in which the interest is fixed for five years is perfect for you. You get the lower rate, but you have to be sure that you are going to want to move in the time period. It still remains that the best long-term bet for a mortgage is the 15-year fixed rate mortgage. You pay less interest and build equity faster.


Other new trends to watch for in the marketplace include mortgages that can be automatically converted into reverse mortgages and longer fixed-rate term mortgages.

Can You Predict Your Cash Flow?

If you provide terms for your products or services to your customers, it can be a challenge to predict how your cash flow will be from day to day. You are actually providing financing for your customers. I hope you understand that is what takes place, you are being the bank.


Terms are a necessity in today's business environment and to land some accounts, it is an absolute. Even though the agreed upon terms are 30 to 60 days or more, it does not always come in on time, however an inconsistent and unstable cash flow does not have to exist.


If you are struggling with inconsistent cash flow, you need to look into factoring. It is a very powerful form of finance that will allow you to predict your cash flow, and grow your company at a rapid pace. You do this by selling your credit worthy accounts receivable to a factoring company. This allows you to get an immediate injection of cash. The factoring company will wait for your customers to pay the invoices while you use your money to meet your cash flow demands.


Factoring is one of the oldest forms of commercial finance, however it remains unknown or misunderstood in the commercial finance market place. Factoring is also known as accounts receivable financing and can be the perfect solution for start ups as well as seasoned and rapidly growing companies.


A start up company can qualify for factoring due to the fact that the invoice is the asset being used. As long as the invoice is to a credit worthy company the invoice then becomes an asset that can be sold to a factoring company for immediate cash. The factor waits on the customer to pay the invoice instead of you waiting on the payment. It is as if you are turning all of your term invoices into COD without taking away your terms to the customer.


Thanks for reading.

Can Health Savings Accounts Bring Down High Healthcare Costs?

More and more people now have the opportunity to choose Health Savings Accounts (HSAs) over other, more traditional, health insurance coverage – more companies and financial institutions offer this option than ever before. For the healthcare consumer, this is good news. When the community as a whole is given more choice when it comes to healthcare options, everyone benefits. HSAs let you decide how to manage your own medical needs and work out a financial plan that works best for your specific circumstances.


An added advantage of Health Savings Accounts is the prospect of lowering the nation’s rising healthcare costs, and making the price of medical care more affordable for everyone. But how can revamping the current health insurance system affect healthcare from a financial standpoint? More to the point, how can a different kind of health insurance make it easier for most people to pay for required medical expenses?


In 2003 the Medicare Modernization Act introduced the concept of HSAs to the American public for the first time. A Health Savings Account is meant to encourage people to invest in their own healthcare through personal savings, and reduce health care costs at the same time; a revolutionary idea that has the potential to be the starting point for positive changes in healthcare. Health Savings Accounts have sparked a lot of debate amongst those who believe in the idea and those who are wary of its ability to change the face of healthcare as we know it.


When you get down to the fundamentals, HSAs are truly designed to improve healthcare and make it accessible to the vast majority of people. For the individual, HSAs make it easier to pay for medical expenses when they arise. Coupled with a high-deductible health insurance policy, a Health Savings Account allows you to save pre-tax money and earn interest tax-free.  This allows you to have money set aside to cover a whole host of medical bills, including items that aren’t necessarily covered by traditional insurance plans, such as dental expenses or alternative treatments. Individuals and employers can deposit up to $2700 per person and up to $5450 for a family, and any time you need to withdraw any amount to pay for qualified healthcare costs, you can do so tax-free. In addition, premiums for high-deductible insurance policies can be as little as half the amount of traditional PPO policies.


And because a Health Savings Account is tied to an insurance policy, more expensive treatments are covered, usually 100%, after you’ve met your deductible. When you turn 65, any savings remaining in the account can be withdrawn tax-free to be used for medical expenses you incur in your senior years. In addition, the savings you accumulate in a HSA work like a retirement fund. The money grows tax-deferred like an IRA, and you can withdraw the money after age 65 to pay for non-medical expenses without penalty, although you will be required to pay taxes. It is important to note, however, that amounts withdrawn prior to age 65 are subject to penalties and taxes.


Giving the individual more consumer power when making healthcare decisions not only helps you and your family save money, but also creates an environment in which healthcare costs in general become more reasonably priced. Essentially, the price of healthcare is so high because free market forces have little sway in the realm of healthcare products and services. Insurance coverage causes a disconnection between the consumer and the item purchased. When you visit the doctor or purchase a prescription from the pharmacist, you don’t know the real price tag. All you see is your insurance payment and the price you pay at the cash register, after your insurance company pays the balance.


This lack of price transparency has led to less competition within the marketplace. People have traditionally chosen their doctors, health products, and other medical items based on location, convenience, or other factors not related to price. When people have the choice to compare different health care providers based on quality of service and price, soon overpriced healthcare will become a thing of the past. People will shop around and force providers to price healthcare more competitively.


As more and more people turn to Health Savings Accounts, medical providers will feel the pressure to post their prices and compete for the consumer's business. Armed with the knowledge of what healthcare actually costs, individuals and families will be less willing to overuse the system, which also drives up prices. (When healthcare appears to cost little or nothing, most people are prone to make use of services even though it may be unnecessary).


At the same time, HSAs naturally promote the use of preventive care. When people understand the true costs associated with healthcare, they will be willing to pay a little more up front to keep their engine running smoothly rather than pay a lot more at a later date to fix a problem they could have avoided.


Health Savings Accounts have also put affordable healthcare within reach for more people, who were previously paying medical expenses out-of-pocket due to inadequate or non-existent insurance coverage. The low premiums of a high-deductible HSA plan together with the option of putting your money in a savings account that earns interest has already encouraged large numbers of people who previously went without coverage to purchase a health insurance plan.


Only time will tell whether or not Health Savings Accounts can drive down skyrocketing healthcare costs, but the system created by such accounts, which affords the individual more freedom to control his or her own financial and medical destiny, bodes well for the future of healthcare in America.

Can Annuities Help You?

Are you beginning to think about you’re financial stability for you and you’re partner’s future? Perhaps you’re beginning to wonder just how you can support yourself during your retirement years? If so, then perhaps it’s time you took at a look at annuities and see if they are the answer to you’re concerns.


So what is an annuity and who do you buy them from? Well, annuities are typically sold by the insurance companies. There are many types of annuities available and knowing which the right one for you is can be difficult. With so many different annuity plans, it’s easy to feel confused and a little lost! Before committing yourself to any annuity contract, you should look to consult with you’re financial advisor, he will identify your personal circumstances and help you find the right annuity plan for you.


Ok, so what is an annuity you ask! Well, to put it simply, an annuity is basically a contract between yourself and the insurance company. You agree to pay the insurance company a lump sum of money and the insurance company invests that money and agrees to pay you interest on that sum over a number of years. To put it simply, an annuity is a loan. Of course, this is just a simple explanation and the details and terms will vary according to the type of annuity you do take out.


When choosing a type of annuity, you are also deciding on a certain level of risk which you are prepared to take. A fixed annuity is one of the safest to sign up for, but it isn’t as rewarding as some of the other annuities. One of the more riskier ones available is the ‘variable’ annuity. You can earn some excellent interest with these, but there is also the possible danger of losing all the money you’ve invested if the money is not invested wisely. Again, your financial advisor will help to explain the best options to you and advise you where you should look to invest you’re money.


When signing an annuity, you are signing a contract, a contract that usually isn’t easy to get out of! So, be careful. Never sign an annuity without fully researching the annuity you’re signing up for and also the insurance company that you’re be dealing with. You should never feel pressured about signing an annuity contract straightaway. If they pressure you to do this, then just walk away! This is you’re long term future at stake! Take a few days, discuss it with you’re partner and also you’re financial advisor.


Annuities aren’t for everybody. They can be confusing and any annuity you’re interested in, needs to be researched thoroughly! Whether an annuity is right for you depends on your personal circumstances. Many have found them beneficial and rewarding, but then again, many find themselves stuck in a contract that they are fighting to get out of. So speak with your advisor and see if an annuity is the answer for you.

Business Loan—An Effective Tool for Growth

Every business requires financing at some point of time to expand and grow. Business loan can be availed easily provided the loan seeker is aware of its various aspects. This helps in a better planning of the loan. 

Before beginning a hunt for a business loan one should know the exact reason for borrowing. It is a new business you want to set up, you aspire to buy business or planning to expand the established one---reasons are many for asking a business loan. So, first you should decide on your requirements and main aim of taking loan. It would be of great benefit if the borrower keeps his business size in mind as it helps in arriving at a better decision regarding loan. 


If you own a small business then it would be wise to take loan against your property. Your home or business can serve the purpose of security as collateral. With the lender having the security he can safely offer a larger amount to borrower. Secured business loans are offered anywhere between £5000 to £100000 and are fairly easy. 

In case of secured business loan, the lender on getting adequate security readily agrees to whatever duration of repayment the borrower is at comfort. Such business loans can be availed for a period of anywhere between 3 to 25 years. On having longer repayment duration at hand, businesspersons, especially of smaller volume, do not feel the burden. Interest rate however depends also on the size of business one holds. Higher business volume will be of a big help in bargaining for lowered interest rate. Credit record of the borrower also contributes towards achieving the desired interest rate. 
    
There is an added advantage of secured business loan that it enables business in paying all previous debts, which may be of higher interest rate. Thus, it can reduce the outgo and businessperson is no longer worried about those many loans and repayments and can concentrate on new plans. 


At times businesspersons face sudden shortage of much needed finance. In order to meet such urgency, short term unsecured business loans are available. However, the lender will charge a high interest rate due to absence of security as collateral. In case loan is required for high investment in some projects then he can opt for long-term repayments.     


There is another effective way of getting loan if the businessperson is unable to offer a suitable collateral, which becomes a problem. No collateral is needed in unsecured cash advance because it is given on the basis of existing business volume, credit history and repayment potential of the borrower. These unsecured business loans, due to absence of collateral, are given usually at higher interest rate and are mostly for an urgent need. 


A lot depends on the loan seeker's credit score with higher score helping in quick processing of the loan. If borrower’s credit score is on a higher side, he may extract favorable lower interest rate and larger amount. You can have your credit score evaluated from any credit rating agency. A score of 620 is considered as good enough to assure the lender of the credentials of the borrower. 


We can say that if availed wisely business loans goes a long way in helping growth of business. Once you put property such as home or business as security before the lender, you are in a position of bargaining for a lower interest rate. Also, the borrower can have greater amount that is needed for expanding business or setting up a new one. Business loans can be availed for immediate requirements if urgency comes.

Business Loan Alternatives

After weeks of answering questions, providing endless financial statements and playing the “hurry up and wait” game you find out that your banker is unwilling to give you a business loan.


Now what? Do you go to another bank and try again? Possibly. But most banks have similar lending criteria. If you did not qualify for a loan at one bank, your chances are not good that you will qualify for a loan at another place. Though it doesn’t hurt to try.


However, there are other financing products that are easy to obtain – and in some instances – work better than a business loan. Here is a very simple quiz:


Does your business:


1. Have commercial customers?


2. Invoice at least $10,000 a month?


Is your biggest challenge:


1. Waiting up to 60 days to get paid by clients?


2. Paying suppliers?


3. Meeting payroll?


If this describes you, then you could be a good candidate for either factoring or purchase order financing. As opposed to bank loans, these two financial alternatives are easy to qualify for. The biggest requirement is that you do business with strong commercial customers, such as big companies or the government.


<b>Factoring</b> is ideal for business owners that cannot afford to wait up to 60 days to get paid for their invoices. Factoring provides you invoice based financing, giving you the money you need to pay rent, suppliers and meet payroll. As opposed to bank loans, factoring has no upper limits. The amount of money you get is based on your invoicing. The more you invoice, the more financing you qualify for.


<b>Purchase order financing</b> is ideal for distributors, wholesalers and re-sellers that have large purchase orders that they cannot afford to fulfill. Under a purchase order financing arrangement, the financing company pays your suppliers on your behalf and helps ensure proper shipping of the goods. The transaction is settled once you invoice your customer and they pay.


Both factoring and purchase order financing can provide you with the financing you need to take your business to the next level.

Business loan: the pillar of financial strength for your business

Business loan gives financial strength to your business so that it can sustain in the highly competitive world of corporate. It helps in the rapid development of your firm, meeting all the needs and expenditure of your business. Business loan safeguards your enterprise against all the odds and nourishes it very efficiently.


Business loan is a useful help for those entrepreneurs who face lot of difficulties arranging capital for the firm time to time. Capital is the supreme and dominating factor in business world and is required for every second purpose in business. With the help of business loan, you can get sufficient capital for running your business flawlessly and smoothly. Business loan also recovers you from the financial wound or losses and provides an ample chance to make a comeback.


It is divided into two major distinction-secured and unsecured business loans. Secured business loan is governed by a crucial feature that is to offer your property as collateral with the lender. In return, lender charges you low interest rate and affordable monthly instalments. At the same time, you bear the risk of losing your property if you fail to repay the lender. Lender may repossess your property. 


On the other hand unsecured business loan is opted without collateral. Lender has no security against the money he provides you.  Therefore, he charges high interest rate and allots short repayment in order to extract all his money in a short time.  You can get fast and hassle free loan delivery if you fill up the application form directly online.

Business Credit Cards Essential for Home Based Businesses

Those who run home-based businesses belong to one of the most dynamic segments of the working world. Technology has revolutionized the way people work and we are witnessing probably the largest sociological shift in generations. If you are a home-based business owner you are part of that revolution.


Working from home gives you two wonderful benefits: you don’t have to pay rent for office space, and you don’t have to commute (no rush, no traffic, less gas). But working from home also entails careful planning especially when it comes to funding the business. This is where business credit cards become very useful.


The most common reason why home-based businesses fail is the mismanagement of finances. Many of those who own home-based business are using their hard-earned savings, home equity loans or lines of credit, and personal credit cards, not business credit cards, as sources of their business funds.


Using your savings may be preferable, if you have reasonable assurance that your home-based business will earn income at a rate higher than the interest rate on your small business credit card. In home equity loans or lines of credit, you will have to pledge the equity of your home. And if your home-based business does not succeed, you could lose your home. On the other hand, unless you use business credit cards for your business, you run the risk of commingling your personal and business expenses, and that makes them harder to manage.


The importance of business credit cards, especially for home-based businesses, cannot be disregarded. Whether the business is home- or office-based, the business needs to keep business finances separate from the owner’s personal finances. Business credit cards give owners the freedom to do just that. You will really appreciate this business credit card benefit when tax season comes and you download your business credit cards transaction history, as well as your monthly and annual reports, from your business credit card company’s website: tax filing becomes a breeze. Keep your personal and business finances separate with your business credit card; it’ll be good for you in the long run.


When you are just starting out your home-based business, you’re likely to incur big purchases. Use a business credit card to pay for office equipment such as computers. You will get some purchase protection, and this is one business credit card benefit that is impossible to overstate.


There are a number of ways to apply for a business credit card. You may be confused about which one of the many business credit cards offers to choose: there are so many flying around. You may want to talk with a friend who is business savvy before making any decision on which business credit card to get.


There may be downsides to using business credit cards, but prudent usage gives you a really effective financial tool. Any business needs credit; and business credit cards help you to establish just that for your home-based business. The best thing to do, if you have doubts on whether you should get a business credit card or not, is to talk to a business consultant about it.

Business Banking – Professional Advice

At the beginning, you will be offered plenty of advice and support to set up your business – enterprise schemes often run seminars and give out free software to help you manage your accounting, for example. Local mentoring schemes can provide a useful way to make contacts with other people who have set up in business and excellent chances to network.


When it comes to tax and accounting, however, you may want to enlist the help of specialists. Particularly if your business has a large turnover or complicated finances, using an accountant can make a world of difference. While some people are put off by the thought of paying fees to accountants, the costs involved can actually be relatively low, and often your tax bill can be significantly reduced. Taking on an accountant may save you money as well as a lot of hard work! Some offer additional services, such as advice and auditing that could help to make your business more profitable.


If you run a business you are legally required to keep records of certain things. For example, if you employ staff you will need to keep PAYE records, and VAT records if you are VAT registered. All businesses must submit a tax return every year – you can now do this online. If you have an annual turnover of over £5.6 million you are legally required to have an annual audit, which must be carried out by a qualified and registered auditor.


Choosing an accountant is a matter of knowing what you want from your relationship, and finding someone whom you trust to do the best job. While personal recommendations from family and friends are a frequent reason for choosing an accountant, you may also want to consider whether they have particular experience in your sector, how much the practice charges, and what additional services they may be able to offer you.


Qualified accountants must be registered with one of the professional bodies that regulate them:


The Institute of Chartered Accountants (in England and Wales, Scotland or Ireland respectively)
www.icaew.co.uk 
The Association of Chartered Accountants
www.accaglobal.com 
Chartered Institute of Management Accountants
www.cimaglobal.com 


Tax is an immensely complicated subject, but the Inland Revenue do attempt to make it as easy as possible to understand the basics. They offer a starter pack for new businesses, and a helpline for the newly self-employed. Check www.hmrc.gov.uk for full details.

Business Banking – Getting The Right Account For Your Business

While many people turn to their usual bank when opening a business account, it’s advisable to shop around. There can be some advantages to using the same bank for personal and business accounts – your manager may be more supportive if you are known to the bank and have a sound financial track record. However, each bank offers different services and has different bank charges.


Many banks are currently offering free business banking for a set period – six months or a year – as an incentive. There are also a variety of support packages, such as free business software and dedicated advisers to help with your business plan. Choose a bank that will give the best all round deal for your particular business – you may also want to consider corporate ethos and ethical banking when deciding which bank to take your business to.


Choosing Your Accounts


Depending on your business type and size, you may need different accounts. If you are likely to be making frequent transactions, for example, you may be better off with an account that charges a fixed monthly fee, rather than a fee per transaction. If you need to process debit and credit card payments, you will need a merchant account.


For overseas trading, you may want a foreign currency account. As with personal accounts, it may be worthwhile to hold more than one type of account – for example, a current account for day-to-day banking and a deposit account for investing profits. There’s nothing to stop you having different accounts with different banks – although you might get a better deal if you hold all your accounts with one.


Opening Your Account


You will need to set up a meeting with a business advisor to open an account. In order to prevent money laundering, you will need to provide certain information at this point – including proof of identity such as driving license or passport, plus proof of your address and signature. The advisor will want to see a business plan and details of your financial planning. There are many schemes that offer help with putting together a business plan. Make sure you have as detailed a plan as possible when presenting it to your advisor – this will help him or her to offer the best services for your needs. 
You will also need an account opening mandate – the bank will provide this. 


For limited companies you will need a certificate of incorporation.

Business Banking - An Overview

Making a success of your business depends on planning and judgement. ‘The bottom line’ is all about managing your finances wisely, whether that means sourcing the funding you need to start up or keeping on top of your accounts.


Setting up or running a business calls for a separate account. Not only will this make your accounting a lot simpler, but also business accounts are tailored specifically to the needs of business clients. Many have a specialised team to deal with business accounts, and can offer help in the form of start up packs and individual advisers. Business accounts differ from personal accounts in that you will normally be charged for transactions – for making deposits and withdrawing funds, for example.


This guide gives you a broad overview of how to open and manage your business account, including:


1. Getting The Right Account For Your Business


How to choose and open your account – what factors to consider and what information you will need.


2. Finding The Finance You Need


Common ways to source funding to set up and run your business, including grants, borrowing, loans and overdrafts.


3. Keeping Your Accounts Healthy


Good practise for managing your account, including info on online banking and finding an accountant.


4. Professional Advice


How to find expert advice on accounting and tax issues. This section includes web addresses for professional bodies.


Having a good relationship with your bank will make a big difference to the success of your business, whether that means extra support when you’re setting up or negotiating an overdraft to smooth your cash flow. Bank business managers can provide a useful source of advice and support – it’s likely they have a good knowledge of the market as well as insight into businesses similar to yours. Based on your individual needs, they should be able to suggest ways to make your business banking more efficient, as well as offer practical solutions to make the most of your account.


As well as your banking contacts, there are a wealth of other sources of help and advice. The government runs several schemes to help businesses get off the ground and keep running – from enterprise loans to business mentors who can guide you through the early stages of your project. Starting a business is a real challenge, but with good planning and sound management, you could turn your dreams into reality!

Building New Credit Habits

Repairing your credit entails getting rid of the
negative credit report information and catching up on
your overdue bills. This could raise your credit score
but might not be enough to make you credit worthy
again. However, to raise your credit score high enough
to entitle you to a loan, you have to rebuild your
credits. Doing so would only prove that you have the
capability to handle credit responsibility.


Although it might be difficult to start, but once you
achieve that momentum you need, you will be sashaying
to a good credit score. You can always begin by
developing the required credit habits.


The Do’s of Using Your Credit Card Wisely


Although many people are born without the skill it
requires to use credit cards, it is important to learn
the rules of the game. All you need to do is to
remember simple do’s and don’ts of credit card usage
and in time, you would welcome healthy spending habits
in your financial life.


The first thing you do want to ever do is to use your
credit card to make your everyday purchases,
especially food, gas and clothing. It is bad enough
not to have cash-on-hand but buying simple everyday
items can develop into a habit wherein you may tend to
substitute a credit card with cash. It is always
advisable not to take your credit card out of your
wallet for everyday purchases but instead use your
cash or a debit card.


The next thing you do not want to do is develop a
habit of making minimum-only payments. If you make
minimum payments each month, you are only increasing
the length of time it will take for you to pay off
your debt. Additionally, it will also increase the
amount of interest you could end up paying.


If you are one of those people who usually buy things
that are way off budget, remember not to use your
credit card to buy things you cannot afford. One way
to get into debt is living off borrowed money. You
might end up waking one day realizing you are so much
indebt that you wish to return your expensive
purchases back to wherever you bought them from.


The Do’s of Using Your Credit Card Wisely


Learn how to make correct decisions when it comes to
buying items you need against those you simply want.
Everybody knows what a “need” is and what a “want” is.
Remember not to substitute need from the want and vice
versa. If you are using your credit card wisely, it
only means that you are being responsible in
recognizing what things you need and which you only
want.


Next, always let your creditor know in advance if you
would not be able to pay your monthly payment on time.
Since most creditors offer assistance with your
payment if you give them a heads up, it is important
not to simply forget about the payment for no reason
at all. You can do this by simply calling your
creditor, explain the situation and ask if they allow
late fees to be waived.


Lastly, do not exceed with your credit limit. The
safest is to stay within at most 30% of your credit
limit. Because the major part of your credit score
reflects on the quantity of debt you actually have, it
is important to keep your balance low in order to
preserve a good credit standing.

Budget Cuts May Harm Access To Imaging

Cuts to the Medicare budget may be the most threatening surgery of all for patients in need of medical imaging services. 


Congress made deep cuts earlier this year in reimbursement for many medical imaging services that Medicare patients receive in physician offices and independent imaging centers.


Experts fear these cuts will mean less access and higher costs for many patients, especially those in rural areas.


Congress, say advocates, should impose a two-year moratorium on the cuts in order to more fully understand their impact on patients.


Starting in 2007, imaging services will be reduced by Congress by some $8 billion over 10 years. Those reductions represent more than one-third of the total Medicare cuts in the 2005 Deficit Reduction Act.


The payment reductions affect a wide range of medical procedures and tests provided in physician offices and imaging centers. For example, reimbursement would be cut:


&#8226; 35 percent for ultrasound to guide less-invasive breast biopsies;


&#8226; 50 percent for PET/CT scans used for diagnosing and managing tumors;


&#8226; 40 percent for bone density studies for diagnosing osteoporosis; and


&#8226; 42 percent for MR angiography that detects aneurysms in the head.


Given the size of these and similar cuts, advocates warn that many physicians will likely discontinue or cut back on the imaging they provide in independent imaging centers or their own offices. If this happens, patients will have to seek these services at hospitals, which can be much further away and often involve higher out-of-pocket costs for patients. As a result, convenient access to services that many Medicare patients rely on will no longer be available.


It's believed that patients in rural areas are likely to be the hardest hit. 


Unfortunately, say advocates such as the Access to Medical Imaging Coalition, these reductions were made without public hearings, public debate or open discussion. The reductions were made without public participation, even though they will likely affect the lives of many Medicare beneficiaries.


Instead, the Coalition believes Congress should impose a two-year moratorium on imaging cuts, so the Government Accountability Office can study the issue.

Breaking down Debt Consolidation

Introduction


Debt Consolidation is a procedure that a number of different people follow nowadays and ultimately what it means is that the person that is swimming in debt that happens to be far above what they have the ability to pay back is going to be the person that goes through a procedure that combines all of those different loans into one source of debt and therefore allows themselves to pay back the consolidated debt in a much easier and less stressful manner. Now, this is perhaps a definition that you’ve been exposed to before and while it sounds good on the top, ultimately it needs to be explained so that more people understand exactly what it is that is being talked about. We will break down a typical debt consolidation case over the rest of this article.


The Problem


The financial situation for the hypothetical person here has become very bleak. They have $10,000 left on their car loan, their mortgage still has a balance of $80,000 and when you toss in all of their other credit card debt, you get to the point where they are in debt up to $100,000 all things said and done. Now, $100,000 is a lot of money and in the case of a typical family it might even be more than three years worth of their wages, so ultimately when you take a look at the $100,000 of debt, you would want some plan that would allow you to deal with it.


The Solution


When you look at all of the different solutions, the first thing that you need to do in all of them is get your bearings. While the car loan and mortgage only represent two different sources of debt, the remaining $10,000 might come from as many as five or six other sources and that can make it very difficult to keep track of. So what you want to do is consolidate those debt sources into one debt source and the way to do that is to take out a home equity loan of $20,000 to pay off everything else and combine that $20,000 with the $80,000 mortgage that you already might have.


The Benefits


Aside from the convenience factor of only having one source of debt instead of several as was discussed above, there is also the interest rate factor. While the average mortgage will have an interest rate between 5% and 7% and most car loans will as well, credit card debt is usually going to be two to three times that amount and likely four or five times that amount if the debt is because of cash advances. So the interest rates would get lowered whenever you take a look at it that way.


Now, credit card minimum monthly repayment amounts are such that you are going to usually be paying at least 5% of your balance each month; in other words, credit card companies expect that any balance you happen to generate on your credit card can be cleared up in less than two years. Mortgages, as many people are aware, have 20 to 25 year terms and therefore the monthly repayment amount of consolidated debt will also be lower and therefore easier to manage.

Breaking The Habit- How To Stop Using Your Credit Card

You know your debt is rising, but still cannot stop
using your credit card for purchasing items. Several
people get easily dependent on credit cards for
everyday expenses and impulsive buys. The fact that
you are borrowing money from the creditor for your
purchase might be tempting, but the truth is: you must
be able to pay it off on time. Neglecting those bills
can cause headaches in the future. You might get
malicious letters from your creditors, or even receive
threatening telephone calls.


Close, Shred and Leave


If you really want to avoid those from happening all
together or if you are starting to drown in your debt,
you have to stop credit card usage. Fortunately, there
are several ways on how to.


Firstly, many people would agree that closing your
credit card account is the best way possible. One and
simple call to your cardholder is sufficient enough to
inactivate your credit card. Doing so might even quiet
down that nagging feeling and desire to purchase items
using a credit card. Just think that there might be
one situation wherein the clerk says your credit card
has been denied; the embarrassment from that situation
is reason enough for you to inactivate your credit
card.


Shredding is also an excellent way to break the habit
completely. You can use an office shredder since it
works great on plastic as it does on paper. Since your
credit card is shredded into pieces, there is no way
that you can swipe it. However, if you do not have a
shredder, scissors are great too. Just cut the card
into small pieces and make sure that the credit card
number cannot be identified by potential thieves.


Another excellent way to stop using the credit card,
especially when you go out of the house, is to leave
them. If closing or shredding is not your style, try
taking your credit card out of your wallet when you
are about to go shopping. In this way, if you have the
urge to buy something you really do not need, you have
to think twice before buying it since you are about to
use your own money.


The Shock and What Your Can Do About It


You have been using your credit card for your expenses
but have you ever thought about the total amount of
cash you spend in interest alone each year? More so,
the duration of time it will take you to just pay off
your credit cards might shock you. It is all about the
numbers and these will put you into shock and can make
you think twice before using that credit card again.


For instance, if you have a balance of $1,000 and an
interest rate of 14%, it will take you about four and
a half years before you can pay it off; that is, if
you are making $25 in payments every month. By the
time you pay off the balance, you will have paid a
total of $347.55 in interest.


Since you know what credit cards can do, you might
want to stop using it once and for all. Learn how to
say “no” since this kind of discipline can help you
stop impulsive buys, thus stopping the use of credit
cards. Always think twice about swiping that credit
card for your purchases and you would not have to
think about repairing your credit in the future.

Bill Consolidation - What You Need To Know.

As easy as it is to get into debt, there are a number of strategies for consolidating your bills and lowering your monthly payments while still paying more to principal and becoming debt-free faster than you thought possible.


If you’re ready to eliminate your credit card debt, you need to assess your situation and then look at the best alternative for your financial needs. Do you own a home? If you own, do you have equity in your home to tap? Can you afford more than your monthly payments, or are you struggling to get by? Is your number one goal getting out of debt, or is it to meet your monthly payments?


If you own a home, and have equity available, you can look at a debt consolidation loan, or a related solution – a home equity line of credit. In this scenario, you are shifting your credit card debt from unsecured to secured debt, which allows you to lower your monthly payment and also lets you deduct the interest payments from your taxes. You may determine that this debt consolidation loan, or second mortgage, can put you on a much faster track to eliminating your debt. That’s because the interest rate on a second mortgage can be much lower than what you’re paying toward credit cards or other high interest debt. Trading higher interest debts such as these for a lower interest payment can save you hundreds each month which you can, in turn, put back toward paying off the debt. Last, but certainly not least, the interest you pay on a second mortgage is tax deductible and that savings too can be put toward your bills.


Or perhaps you already have a second mortgage you’ve been paying on for a while. Especially if you got your first and second mortgages at the same time, it might be time to consolidate them into one loan. Many second mortgages in the last decade carried adjustable interest rates which have increased causing payments to rise. Consolidating your first mortgage and your adjustable rate second mortgage into one low fixed rate loan can also save you a great deal each month which you can use to make payments to higher interest debts.


Two other advantages you may gain through refinancing are the elimination of personal mortgage insurance and the chance to get cash out at closing. When you took out your original mortgage, did your lender require you to carry personal mortgage insurance due to a high loan to value? If so, refinancing may eliminate that requirement. If you have since built up some equity and your new loan to value is low enough to drop the mortgage insurance, your payment amount will be much lower. You may also find that you can take some cash out of your home at closing without significantly increasing your monthly payments. That cash can go toward – you guessed it – your higher interest debts.


If you don’t own a home, or if you own and have no available equity, you can look at debt relief options – including debt settlement and credit counseling. If your monthly payment is your number one concern, it’s worth a try to call your credit card companies and see if a payment plan at a reduced interest rate can be agreed upon. This will allow you to pay more toward your balances each month and eliminate your credit card debt sooner. While your creditors are under no obligation to change the terms of your agreement, they may very well be willing to do so, especially as it is to their advantage to receive payment, and negotiating a payment plan shows that you are taking the initiative to do just that.


If calling your creditors doesn’t work, or if you just want a quick fix, you can contact a debt settlement or credit counseling company. Debt settlement is a service for consumers who want out of debt at the lowest cost, in the shortest time frame, with the lowest payment… while avoiding bankruptcy. Credit counseling, on the other hand, is a solution that lowers your interest rates slightly and can get you a lower monthly payment.


The path to becoming debt free is as different as the ways you can get into debt in the first place. The first step toward eliminating your debt is educating yourself with all the options available to you. Once you’ve identified your needs, you can get started taking the right steps for yourself.

Best way to improve credit score

If you have ever had a loan denied it was probably humiliating, embarrassing, and a harsh reality check.  So much for that bright red Mustang convertible you wanted.  Or maybe it was for an old, beat-up, rusty sedan you thought you could afford to drive back and forth to work.  Sadly, that new five bedroom, brick home with the sun porch is out of reach.  Or was it your last hope for a deposit to rent a simple one bedroom apartment for you and your family.  Some people know before they ever apply for a loan that they will be denied due to a poor credit rating.  Others are completely surprised to find out their credit history is hurting.  How does this happen?       


Sometimes it’s just a lack of discipline or good organizational skills.  This leads to poor paying habits and late payments which can damage your credit.  Sometimes it’s temporary circumstances beyond your control such as a job layoff, divorce, illness, etc.   You are forced to choose between putting food on the table and making a credit card payment.  That’s a tough one.  Thankfully, there are ways to improve your credit rating with a little effort.  The following five tips can help.


1. Often, a big part of your credit score depends on your debt to credit ratio.  I’ll give you an example.  If you have a credit card with a $1000 limit and you carry a $900 balance this would make the percentage you owe to the percentage available 90%.  On paper it would look like you were in a credit-tight position.  There are three ways to improve this.


A)Apply for another card.  Whatever the limit is becomes part of the calculation.  If it is $1700 you now have a total limit of $2700.  This brings your ratio down to 33% ($1000 original credit + $1700 additional credit divided by $900 balance=33%).  That’s a big difference.  
B)You can do the same thing by asking your current credit card company to raise your limit.
C)Pay down your current balance.  Make it a priority!


2.Always try to pay your bills on time.  Chronic slow or late payments lead to denials or approvals with ridiculously high rates.  If you just can’t seem to remember when to pay bills try using a   personal planning calendar, PDA, or numbered folder.  I use a folder that has multiple dividers numbered 1-31 for each day of the month and additional dividers for each month.  You can get these at office supply stores.  File your bills in the divider where you will see them the week before they are due. Check the folder daily.  


3.Get a copy of your credit report and contact the credit bureaus if you find errors.  Ask to have them removed.


4.If you have a credit card for every store you have ever entered….cancel some!  No one needs fifty retail credit cards.  Retail cards are sometimes viewed less positively than bank cards so get rid of them first.


5.Piggyback on the good credit of a friend or relative.  Have them add you to their account (but don’t use it).   Once you’re on, ask the creditor to report this account to the credit bureaus.  Be careful with this one.  Don’t abuse the goodwill of your friend or family member by using the account without asking first!  


     In our credit-driven society it’s way too easy to bite off more than you can chew.  Throw in a couple of life’s little emergencies and you can quickly get into trouble.  The tips here can be helpful, but I suggest you don’t just use them for temporary gain.  If you go to the trouble to improve your credit, go to the trouble to keep it good. Look at your habits and try to change them if necessary.  I know this is a tough one that we all have trouble with, including me.  Hope this helps.